Stocks recovered from early weakness as investors returned to AI-linked shares, keeping global equities close to record highs. The MSCI All Country World Index edged higher after briefly slipping, while Asian equities reversed an early 1% drop to finish firmer as South Korea recovered and Chinese technology stocks extended gains. Nasdaq 100 futures remained slightly lower, but losses were trimmed as appetite for technology stabilised, while European futures pointed to a stronger open.
The AI trade remains the key support for markets, with investors still backing semiconductors and related technology despite the recent pullback. Tencent jumped sharply, while the broader focus remains on whether the powerful momentum in chips and AI infrastructure can continue without being derailed by macro risks. The S&P 500 has now posted eight straight gains, its longest winning streak since May 2025.
Middle East uncertainty remains the main macro overhang, with conflicting messages from the US, Israel, and Iran keeping oil and inflation risks in focus. Brent eased to around $94 after earlier gains, helping Treasuries recover slightly, while gold rose as investors retained some demand for protection. JPY was steady around 159.7 after Japanese officials reiterated that they are ready to act in FX markets if needed.
On the data front, we have UK mortgage approvals this morning, shortly followed by Eurozone CPI.
• S&P 500 futures −0.2%
• Nasdaq 100 futures −0.3%
• US 10-year yield −2 bps to 4.43%
• Bitcoin −1.4% to $70,387
• Gold +0.9% to $4,525
• Brent −1.1% to $93.95
